- a leading power and heat companyin the Nordic area

Presentation for investorsDecember 2008

2

Disclaimer

This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Fortum shares.

Past performance is no guide to future performance, and persons needing advice should consult an independent financial adviser.

3

• Fortum today• European power markets• Russia• Financials, capex and outlook• Supplementary material

4

We intend to keep our leading position

To be the benchmark power and heat company excelling in sustainability

High ethicsCo-operative spiritExcellent performance

Vision

Strategy

Values

Fortum focuses on the Nordic, Russian and Baltic Rim markets as a platform for profitable growth Become the leading power and heat company

Become the energysupplier of choice

Benchmark business performance

Core Purpose

"Our energy improves life for present and future generations"

Creativity and innovation

5

Fortum at a glance

Nordic countriesGeneration 51.1 TWhElectricity sales 58.5 TWhHeat sales 20.4 TWhDistribution cust. 1.6 millionElectricity cust. 1.3 million

Nr 1

Nr 2

Heat

Electricity sales

Distribution

Power generation

TGC-1 (~25%)Power generation ~6 TWhHeat production ~8 TWhTGC-10 Power generation 18 TWhHeat sales 27 TWh

Russia

2007 data

6

Fortum Markets

Large customers

Fortum Business structure

Small customers

Other retail companies

Fortum Distribution

Transmission and system services

Nordic wholesale

market

Nordic wholesale

market

Nord Pool and bilateral

FortumPower

Generation

Deregulated

RegulatedPower

Generation 68%

Heat 18%

Distribution14%

Markets 0%

Fortum's comparable operating profit in 2007

EUR 1,564 million

7

Strong growth in EBITDA and in cash flow

Net debt

4 345 4 466

6 520

0

1 500

3 000

4 500

6 000

7 500

2006 2007 LTM Q3'08

MEUR

EBITDA (LTM)

2 3702 066

1 884

0

500

1 000

1 500

2 000

2 500

2006 2007 LTM Q3'08

MEUR

Adjusted net debt/EBITDA (LTM)

2.3 2.2

2.8

0,0

1,0

2,0

3,0

4,0

2006 2007 LTM Q3'08

Sales gain From Lenenergo shares

Total net cash from operating activities (LTM)

1 1511 550

1 785

0

500

1 000

1 500

2 000

2006 2007 LTM Q3'08

MEUR

Additional dividend from Hafslund

8

Growing capital returns

Total ~ 5,075 MEUR

* With 60% payout ratio** From continuing operations

1999 2001 20032000 2002 2004

0.18 0.23 0.26 0.310.42

0.58

2005

1.12

Dividend per shareEUR

0.13

1998

0.58

**0.

54

2006

1.26

0.73

*0.

53

• Dividend of EUR 1.35 per share, in total ~EUR 1.2 billion

• Mandate for repurchasing of the company’s own shares; maximum EUR 300 million

• Dividend policy of 50 - 60% payout of previous year's results on the average

2007

1.35

0.77

*0.

58

9

• Fortum today• European power markets• Russia• Financials, capex and outlook• Supplementary material

10

Key EU objectives by 2020

Competitiveness Sustainability

Security of supply

• Implementation of internal energy markets

• Energy efficiency +20% (2020)

• Increased resources for technology development

• Development of cross-border transmission• Increase in own production• Enhancement of external energy relations

• Minimum reduction of EU CO2 emissions 20% (2020)

• Renewables 20% (2020)• Development of CO2

capture and storage

11

Huge need for new capacity

Globally ... ... European wide ... ... and in Russia

Source: IEA World Energy Outlook 2006, reference scenario for generation1 Production 2004: 17 408 TWh/IEA 2006

1,700

1 000

1 200

1 400

1 600

1 800

2000 2005 2010 2015 2020

700+ TWh by 2020

Source: Ministry of Industry and Energy

Existing/remaining productionDemand

Source: Eurprog 2006; Europe, EU27; Fortum

1,300 TWh

0

1,000

2,000

3,000

4,000

2000 2005 2010E2015E2020E

TWh TWh

0

5,000

10,000

15,000

20,000

25,000

30,000

~10,000 TWh

20041 2010E 2020E

TWh 2,000

12

Electricity demand resilient to changes in economic conditions

• Nordic demand has grown consistently, also over the recession in early 90’s

• Weather affects demand more than a potential industry slow down

• Supply side variations more important for the demand-supply balance

– Yearly hydro variation up to+/- 40 TWh

– Demand increases 3-4 TWh p.a.

Nordic electricity consumption 1986–2007

0

50

100

150

200

250

300

350

400

450

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

CAGR 1.2%

Source: Nordel, gross consumption

13

Nordic demand breakdown

• Non-industrial demand is forecast to increase +20 TWhby 2020

• Industrial demand to grow by ~10 TWh by 2020

• Net effect on announced closures and investment plans approximately -2 TWh in 2020 demand forecast

• Recent development: Forest industry closing down while metal, mining, oil and chemical industries expanding

Nordic electricity demand, 100% = 400 TWh

10 % Forest net demandForest self-supplied

Other industrialdemandMetalOil and gas

Chemical

Other non-industrialdemandTrade and services,transport

Housing

45%

55%

Source: Nordel, Fortum

14

Nordic market is tight

Source: Nordel / Nordic TSOs

Import needed in the Nordic area

Consumption, demand and import/export in the Nordic at winter peak 2008/2009

(MWh/h) All time Peak Available Import (-)/peak 2008/2009* capacity export (+)

Denmark 6 480 7 100 7 300 200Finland 14 800 15 100 13 200 -1 900Norway 23 050 23 800 24 600 800Sweden 27 300 28 900 28 500 -400Total 69 000 74 900 73 600 -1 300* Temperature corresponding to a ten years winter dayTSO reserves available 5,400 MW

15

Demand is growing – new capacity is needed in the Nordic market

*) Partly decommissioned due to increasing environmental requirements, partly replaced by more efficient new plants; may still be available as peak-load capacity.

Nuclear OL3

Nuclear upgrades

Hydro

CHP

Thermal

Wind

Committed new production ~45 TWh

Demand forecasts for the Nordic market

• Electricity demand is expected to increase by ~35 TWh by 2020 compared to 2007

• Estimated retiring generation approx. 35 TWh*)

• Total need for investments roughly 70 TWh– decisions for another 25 TWh still needed

370

380

390

400

410

420

430

440

450

460

470

2010 2015 2020

TWh

Fortum

Eurprog

DG TREN

Vattenfall

Svensk Energi high

Svensk Energi low

16

New capacity, except nuclear, will require a well over 60 EUR/MWh power price

Estimated lifetime average cost in nominal 2013 terms.Large variations in cost of new hydro and wind due to location and conditions.

EUR/MWh

Coal Gas Nuclear Hydro Wind Cleancoal

0102030405060708090

100110

Other costs ( variation)CO2 cost 30 €/ton

0102030405060708090

100110

1995 -97 -99 -01 -05 -07 -09 -11 -13-03

Source: Nord Pool

EUR/MWh

Futures1 December 2008

17

Current transmission capacity from Nordic area to Continental Europe is ~4000 MW

Countries Stations Transmissioncapacity MW

From Nordel To Nordel

Denmark - Germany 2100 1550

Sweden - Germany 600 600

Sweden - Poland 600 600

Norway - Netherlands 700 700

Total 4000 3450

700

2100 600 600

350

• Theoretical maximum in transmission capacity ~35 TWhper annum

• 2007 net export from Nordic area to Continental Europe was ~9 TWh

• Approximately 20 TWh net export fairly easily reachable• NorNed was taken into use in May 2008

18

Additional700 MW cable NO-NL

studied

New investments could double capacity to Continent by 2020Present interconnections from the Nordic market to the Continent have a total capacity of abt. 4000 MW

New interconnections could double the capacity to over 8000 MW by 2020

700 -1400 MW NO-DE studied

DK-NL link studied

Baltic Wind Link 1100 MW studied to connect SE, DK and DE through the Kriegers Flak

offshore wind park

Jylland – DE capacity to be increased by 500 MW in 2011

and by further 500 MW by 2017

PolLit Link of 1000 MW planned to connect the Baltic market to Poland

by 2012-2016. It would also open a new transmission route from the Nordic market to the

Continent

In the EU's Second Strategic Energy Review the Commission focuses strongly on interconnecting the Baltic states and

Poland to form an electricity market around the Baltic Sea

New internal Nordic grid investments

provide for increased available capacity for export from southern Sweden, Norway and

Denmark

19

Market coupling milestones

• Market coupling between Belgium (BelPEX), Netherlands (APX) and France (Powernext) since November 2006

• Market coupling EEX - Nord Pool started 29 September 2008 but was on 8th October suspended until Q1/'09 due to technical problems

• Market coupling NL-Nord Pool 2009 trough the NordNedcable

– during 2009 implicit auctions, synchronized with market coupling Nord Pool-Germany and Germany-BE/NL/FR

• Market coupling agreement signed in June for DE-F-BeNeLux.

– during 2009• NL-UK planned trough the BritNed cable• Integration of the Baltic power market into the Nordic power

market is discussed– Baltic Spot price area not before Q3 2009 due to Estonian law

change requirements• Fingrid is studying possibilities to increase flexibility in

electricity trade with Russia

Existin

g

2009

Q32008

2010

20

North-European power markets integrating

• Significant increase in grid capacity planned

• The maximum export capacity from the Nordic market to the Continent and Baltics could double by 2020

• Market coupling proceeding• Nordic energy ministers meeting end-

September: – grid investments to be harmonised

and implemented as soon as possible

• In the EU's Second Strategic Energy Review the Commission will focus oninterconnecting the Baltic states and Poland to form an electricity market around the Baltic Sea

* Based on 7,000 h/a utilisation

0

2 000

4 000

6 000

8 000

2005 2010 2015 2020

MW

0

20

40

60

80

TWh

Connections to/from Continent MWConnections to/from Baltics MW*Theoretical export capacity TWh

Expected development of grid capacity

21

Nordic water reservoirs

Source: Nord Pool

Reservoir content (TWh)

0

20

40

60

80

100

120

20062000 2007 reference level20082003

1 5 9 13 17 21 25 29 33 37 41 45 49week

22

Deficit or excess in water reservoirs affects the spot price

Water + snow compared to normal (TWh)

Nordic spot price (EUR/MWh)

-60

-40

-20

0

20

40

60

80

1/2000 1/2001 1/2002 1/2003 1/2004 1/2005 1/2006 1/2007 1/20080

10

20

30

40

50

60

70

80

23

Nord Pool year forwards – with high volatility

€/MWh

24262830323436384042444648505254565860626466687072

Year 05 Year 06 Year 07 Year 08 Year 09 Year 10 Year 11 Year 12 Year 131 December 2008

2004 2005 2006Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2Q1 Q3 Q4 Q1

2007Q2 Q3 Q4 Q1

2008Q2 Q3 Q4

24

Nord Pool forwards and historical development of Fortum full year hedges – managing volatility

2005 2006 2007 2008Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

75EUR/MWh

Forward 2007 Forward 2008 Forward 2009 Forward 2010

Hedge avg. 2007 Hedge avg. 2008 Hedge avg. 2009 Hedge avg. 2010

40% 50% 65%40%

55%75%

65%35% 35%

45%

20% 25% 35%55%20%

25

Forward, spot and achieved price of Fortum – beating the spot in 2007 and Q1-Q3/2008

0

5

10

15

20

25

30

35

40

45

50

55

60

2005 2006 2007 2008

EUR/MWh

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Forward 2006 Forward 2007 Forward 2008

Achieved 2006 Achieved 2007 Achieved until Q3 2008

Spot 2006 Spot 2007 Spot until Q3 2008

49.3 €/MWh

42.7 €/MWh39.7 €/MWh

27.9 €/MWh

37.1 €/MWh

48.6 €/MWh

31.2 €/MWh

29.3 €/MWh

26

European prices still clearly above Nordic prices

Source: , ATS

Spot prices Forward pricesEUR/MWh

Dutch

German

Nordic

Russian*

* Including capacity tariff estimate. E.g 2008 10 €/MWh

13 November 20080

10

20

30

40

50

60

70

80

90

100

110

2005 2006 2007 2008 2009 2010

27

Fuel and CO2 allowance prices

Crude oil price (Brent)

020406080

100120140160

USD

/ bb

l

2005 2006 20092007 2008

CO2 price

05

101520253035

EUR

/ tC

O2

2005 2006 20092007 2008

Coal price (API2)

04080

120160200240

USD

/ t

2005 2006 20092007 2008

Gas price (NBP)

020406080

100120

GB

p / t

herm

2005 2006 20092007 2008Source: ; market prices November 2008; 2008-2009 future quotations

Crude oil price (Brent) CO2 price

Coal price (API2) Gas price (NBP)

28

Condensing power fuel and CO2 costs

• Current Nord Pool spot hardly covers the marginal cost for fuel and emissions

• Running a gas fired condensing plant would require a significant increase in Nord Pool spot

Coal32

CO216

Marginal costCoal + CO2

48 E

UR

/MW

h

Gas63

CO2: 8

Marginal costGas + CO2

71 E

UR

/MW

h

Source: Bloomberg spark spread calculator (ESSC): Fuel prices at spot on 27 October 2008 (API2 for coal, BEB at EEX for gas). Thermal efficiency for coal 36%, for gas 49%. CO2 coefficient 0.9 for coal, 0.42 for gas.

?

?

NP Spot52 EUR/MWh

Margin for• Other variable costs• Fixed costs• Return on invested capital

29

• Fortum today• European power markets• Russia• Financials, capex and outlook• Supplementary material

30

Russia is the World’s 4th largest power market – and growing rapidly

Source: IEA, 2008, data 2006*) Ministry of Industry and Energy

8001,0001,2001,4001,6001,8002,0002,200

2000 2005 2010 2015 2020

1,700

2,000

0500

1,0001,5002,0002,5003,0003,5004,000

USChin

aJa

pan

Russia

India

Canad

a

German

y

France

Brazil

Nordic UK

South

Korea

TWh

Demand growth 700+ TWhbefore year 2020

• High scenario 2,000 TWh/a by 2020• Base scenario: 1,700 TWh/a by 2020

Russia is the 4th largest power market in the World

Demand for electricity in Russia to increase 50% by 2020 *)

31

TGC-10

Surgut

Kurgan

Tyumen

TobolskMoscow

St. Petersburg

Chelyabinsk

NyaganKhanty-Mansisk

TGC-1

• Fortum holding 93.4% at the moment (income statement consolidated from 1 April 2008)• TGC-10 operates in the heart of Russia’s oil and gas producing region• EUR 2.5 billion paid of which EUR 1.3 billion remains in the company (share issue) and

will be used for planned EUR 2.5 billion investment program of TGC-10• The acquisition adds appr. 18 TWh/a electricity and appr. 27 TWh/a heat• Annual efficiency improvement to exceed EUR 100 million in 2011• Marginally earnings dilutive for two years• The integration team headed by SVP Tapio Kuula started on 1 April 2008

TGC-10

TGC-1• Fortum holding 25.7% at the moment (associated company) • ~6,250 MW electricity production capacity (appr. 50% hydro), ~24 TWh/a electricity, ~30 TWh/a heat

And some minor assets from shareholdings in companies spun-off from Lenenergo.

Fortum's current holdings in Russia

32

"Power industry law" approved 2003Establishment of Russian power exchange (ATS) 2001Launch of the free-trade sector of the wholesale market

in European & Urals 2003in Siberia 2005

Launch of balancing power segment 2006Launch of new wholesale market model 2006Restructuring of regional "energos" (P&H companies) completeFormation of new companies completeCapacity market 2008Competitive market of ancillary services 2009Financial derivatives market 2009Full liberalisation of the wholesale market 2011 onwards

Key steps in the reform

Russian power industry reform has progressed well

Time

33

Reform – Recent and planned events for 2008-2009

• RAO UES ceased to exist in June 2008

• Market Council established to continue the power market development

• Interest promotion organisation for GenCos established

• Launch of Transitional Capacity Market

• Liberalisation rate increased to 25%

• First capacity auction held in July 2008

• Daily gas trading experiments

• Share issue completed in all TGC's and WGC's except WGC-1

• Increase of power market liberalisation rate to 50%

• Launch of Long Term Capacity Market rules in March 2009

• First long term capacity auction at the end of 2009

• Daily trading of gas

• Launch of exchange traded combined energy and capacity contracts

• Launch of Ancillary Services Market

• Launch of Financial Derivatives Market

Events taken place in 2008 Planned events during 2008-2009

34

Further power market liberalisation

5 %10 %

15 %25 %

30 %

50 %60 %

80 %100 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

1/1/

2007

7/1/

2007

1/1/

2008

7/1/

2008

1/1/

2009

7/1/

2009

1/1/

2010

7/1/

2010

1/1/

2011

100 %

• Further liberalisation of energy market to increase to 50% in July 2009

• The rate of liberalised volume is based on 2007 balance. All new capacity is sold with liberal prices

• The sales to households will remain regulated still after 2011

Share of liberalised trade for existing capacity

35

Currently 25% of electricity sold with liberalised prices

• Day-Ahead-Market for electricity well-functioning and competitive

• All volume sold to Day-Ahead-Market, but market based price formation for about 25% of the volume

1) In addition generators currently receive on average about 10 EUR/MWh capacity paymentUsed EUR/RUB exchange rate of 34.6

European and Urals part power price 1)

development; EUR/MWh

0

5

10

15

20

25

30

35

40

1.1.06 1.7.06 1.1.07 1.7.07 1.1.08 1.7.08

36

ChelyabinskKurgan

Tyumen

NyaganTobolsk

Moscow

2007 2013

MW

+73%+2,270 MW

3,020

0

1,000

2,000

3,000

4,000

5,000

6,000

5,290

Investment programme of TGC-10

Electricity capacity (MW)Plant Fuel type Existing Planned Total

Tyumen CHP-2 Gas 755 450 1,205Tyumen CHP-1 Gas 472 190 662Tobolsk CHP Gas 452 210 662Chelyabinsk CHP-3 Gas 360 220 580Chelyabinsk CHP-2 Coal, gas 320 320Argayash CHP Coal, gas 195 195Chelyabinsk CHP-1 Coal, gas 149 149Chelyabinsk GRES Gas 82 82Nyagan GRES Gas 1,200 1,200Boilers -

TGC-10 3,020 2,270 5,290Kurgan Generation (49%) Gas 235 235

37

Overall integration status

• Integration• The integration process started in April 2008 with an integration team

headed by Tapio Kuula• In October, expatriates to power plants, heat networks and maintenance

companies• Now about 45 persons

• Integration process is in line with the original plan• All major processes understood, changes implemented• Service activities are speeding up, sites audited• New organization structure and Fortum's management model have been in

place since the beginning of September 2008

38

Efficiency improvement to exceed 100 MEUR in 2011

• Purchasing

• Portfolio Management and Trading (PMT)

• Heat regulation

• Heat - technical and business improvements

• Generation - technical improvements

• Others

39

• Fortum today• European power markets• Russia• Financials, capex and outlook• Supplementary material

40

Operational performance improved by 28%

Low sales margin in Markets

1-334418

1337

1048

-72-29

MEUR

PowerGeneration

I-III 2007 Heat Distribution Markets Russia Other I-III 2008

Consistent hedging strategy and higher hydro power production in Power Generation

Higher fuel and CO2costs in Heat

Distribution – stable business as usual

The first year of integration in Russia

Comparable operating profit

41

Income statement

MEUR III/2008 III/2007 I-III/2008 I-III/2007 2007 LTM

Sales 1 272 860 4 034 3 159 4 479 5 354Expenses -877 -350 -2 682 -1 832 -2 632 -3 482

Operating profit 395 510 1 352 1 327 1 847 1 872Share of profit of associates and jv 8 6 78 223 241 96Financial expenses, net -66 -45 -185 -117 -154 -222

Profit before taxes 337 471 1 245 1 433 1 934 1 746Income tax expense -69 -44 -256 -218 -326 -364

Net profit for the period 268 427 989 1 215 1 608 1 382Minority interest -16 -4 10 31 56 35

EPS, basic (EUR) 0.32 0.48 1.10 1.33 1.74 1.52EPS, adjusted (EUR) 0.32 0.22 1.10 0.87 1.28 1.52

LTM = Last Twelve Months

42

Cash flow statement

MEUR III/2008 III/2007 I-III/2008 I-III/2007 2007 LTM

Operating profit before depreciations 532 623 1 735 1 663 2 298 2 370

Non-cash flow items and divesting activities -56 -263 -38 -268 -286 -56

Financial items and taxes -92 -89 -372 -231 -393 -534

Funds from operations (FFO) 384 271 1 325 1 164 1 619 1 780

Change in working capital 17 -16 115 161 51 5

Total net cash from operating activities 401 255 1 440 1 325 1 670 1 785

Paid capital expenditures -301 -128 -680 -341 -592 -931

Acquisition of shares -442 -247 -1 215 -257 -285 -1 243

Other investing activities 1 282 -44 258 268 -34

Cash flow before financing activities -341 162 -499 985 1 061 -423

43

MEUR LTM 2007 2006in Q3 '08

Sales 5 354 4 479 4 491

Comparable operating profit 1 853 1 564 1 437

Cash flow from operations 1 785 1 670 1 151

Balance sheet total 20 546 17 674 16 839

Interest-bearing net debt 6 520 4 466 4 345

Net debt/EBITDA* 2.8 2.2 2.3

Return on capital employed (%)* 14.1 14.0 13.4

Return on shareholders' equity (%)* 16.7 15.8 14.4

Key ratios

*2007 adjusted for REC and Lenenergo gains

44

Current Fortum Group financial targets

Return on capital employed 12%

Return on shareholder's equity 14%

Net debt/EBITDA 3.0–3.5

45

Capital expenditures EUR 1 - 1.5 billion – significant flexibility

• Annual capital expenditures EUR 1–1.5 billion

• Maintenance/productivity EUR 300–500 million p.a.

• Growth in Nordic and Baltic rim countries EUR 200-500 million p.a.

• Investments in Russian growth on average EUR 500 million per annum

Maintenance

Growth

Russian growth

~ EUR 300–500 m

~ EUR 500 m

~ EUR 200–500 m

Esimated annual Capex 2009-2013

4646

Good Liquidity and sizable committed facilities

In October, Fortum made an additional drawing of EUR 500 million from its committed long term credit lines (EUR 1.5 bn RCF maturing in 2013). This will cover all outstanding debt maturing in 2008.

LIQUID FUNDS AND COMMITTED CREDIT LINES (MEUR)

Liquid FundsCash and cash equivalents 663Bank Deposits over 3 months 516

1 179of which in Russia 1 109

Available Outstanding Total amountCommitted Credit Lines Short Term - Overdrafts 202 11 213Long Term - RCF due 2011 1 200 0 1 200Long Term - RCF due 2013 1 000 500 1 500

2 402 511 2 913Total Liquid funds and available committed credit lines 3 581

4747

Updated debt maturity profile end of October

0

500

1000

1500

2000

2500

Q4/2008 2010 2012 2014 2016 2018+

Bonds Financial institutions Other long-term debt CPs Other short-term debt

MEUR

634

245

2.268

501

1.643

274

738

81

877

534299

48

A turnaround programme launched in Markets

• New management• Product portfolio• Customer segments• Fixed costs

– Union negotiations started in Finland and Sweden, 200 people

• Procurement price• Electricity price increases in Finland and

Sweden– Finland: 9% in Aug, 14% in Dec– Sweden: 13% in Oct

49

Hedging of Power Generation's Nordic sales

Hedge ratio Hedge price

Rest of 2008 ~ 65% ~ EUR 46 per MWh

2009 ~ 55% ~ EUR 53 per MWh

(~70%) (~ EUR 46 per MWh)

(Status at the beginning of July 2008)

(~45%) (~ EUR 51 per MWh)

2010 ~ 20% ~ EUR 55 per MWh

Status at the beginning of October 2008

50

• Flexible power and heat production portfolio

• Integration of Russian TGC-10 proceeding well –over EUR 100 million efficiency improvements by 2011

• Growth through the investment programmes

• Strong financial performance and financial headroom

• Carbon exposure among the lowest among European power utilities

Fortum well positioned for the future

51

• Fortum today• European power markets• Russia• Financials, capex and outlook• Supplementary material

5252

• Olkiluoto 3, Finland, nuclear• Swedish nuclear• Suomenoja, Finland (gas CHP)• Järvenpää, Finland (biomass CHP)• Brista, Sweden (waste CHP)• Refurbishing of existing hydro assets• Wind power, Sweden• Częstochowa, Poland (coal/biomass CHP)• Tartu, Estonia (biomass/peat CHP)• Pärnu, Estonia (biomass/peat CHP)

Fortum's investment programme – Nordic region, Poland and Baltic countries

MW (El.) MW (Heat)

400300240 220

25 5520 60

1501065 12025 5025 45

EUR 200-500 million per annum until 2013– electricity capacity ~1,200 MW– Nuclear investments in associated company balance sheets– ~80% CO2-free

53

Nordic power generation mix

Source: Nordel

0

20

40

60

80

100

120

140

160

Denmark Norway Sweden Finland

Fossil fuels

Nuclear

Waste

Biomass

Wind

Hydro

TWh/a

Total Nordic generation 397 TWh in 2007

4

19

10

214

63

87

TWh

Hydro variance +/- 40 TWh from average

Net import in 2007: 3TWh

1

5

3

54

16

22

%

54

Still a highly fragmented Nordic power market

SEAS-NVE

Fortum

Vattenfall

Others

Hafslund

E.ON50%

HelsinkiStatkraft

GöteborgSyd Energi

Dong Energy

Electricity distribution14 million customers~500 companies

Power generation397 TWh

>350 companies

Fortum

Vattenfall

Dong Energy

Others

Statkraft

30%

E.ONPVO

E-CO Energi

BKKNorsk Hydro

Helsinki

Electricity retail14 million customers~350 companies

51%

Helsinki

Dong Energy

Fortum

VattenfallOthers

E.ON51%

Hafslund

SEAS-NVEStatkraft

ÖstkraftÖresundskraft

Current market shares based on 2007 figures, active players

55

Fortum's carbon exposure is among the lowest in Europe

0

200

400

600

800

1000

1200

DEI

Nuo

n

RW

E

Dra

x

CEZ

Sco

ttish

&S

outh

ern

Uni

on F

enos

a

Ende

sa

Ene

l

EDP

Vat

tenf

all

Don

g En

ergy

E.O

N

Elec

trabe

l

PVO

Iber

drol

a

EDF

Brit

ish

Ene

rgy

Verb

und

Fortu

m

Sta

tkra

ft

g CO 2/kWh electricity

Source:PWC & Enerpresse , 2008Changement climatique et Électricit é

Average 373 g/kWh

2007

g CO 2/kWh electricity

Source:PWC & Enerpresse , 2008Changement climatique et Électricit é

Average 373 g/kWh

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Foreign investors 35.3%Finnish State 50.8%

Other Finnish investors 7.3%

Households 5.0% Financial and insurance institutions 1.6%

• Leading power and heat company in Nordic• Listed at the Helsinki Stock Exchange 1998• More than 50,000 shareholders• Among the most traded shares in Helsinki stock exchange• Market cap ~13 billion euros

A leading Nordic power and heat company

30 November 2008

57

Hydro power 37%

Peat 2%

Coal 10%

Other 2%

Nuclear power 46%

Biomass 3%

Total generation 53.2 TWh(Generation capacity 10,768 MW)

Fortum's Nordic power generation in 2006

Fortum's Nordic power generation

Hydro power 39%

Peat 1%

Coal 6%

Other 2%

Nuclear power 49%

Biomass 2%

Total generation 51.1 TWh(Generation capacity 10,775 MW)

Fortum's Nordic power generation in 2007

Natural gas 1%

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Total production 21.9 TWh(Production capacity 9,381 MW)

Fortum's Nordic heat production in 2007

Oil 6%Peat 5%

Heat pumps, electricity 16%

Waste 6%

Biomass fuels 22%

Natural gas 9%

Other 12%

Coal 24%

Fortum's heat production

Total production 26.1 TWh(Production capacity 11,223 MW)

Fortum's total heat production in 2007

Oil 5%

Peat 5%Heat pumps, electricity 14%

Waste 5%

Biomass fuels 19%

Natural gas 19%Other 9%

Coal 24%

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